Personal Loans For Gig Workers

Who qualifies as a gig worker?

Gig workers are usually thought of as individuals that work on a short-term or on-demand basis. Examples of gig workers can include independent contractors, freelancers, or on-call workers. Gig workers typically work on a 1099 basis as opposed to being a W2 employee. While gig workers can enjoy more flexibility, the power of being their own boss, tax advantages, and potentially higher pay, there can be drawbacks too. Unlike W2 employees, gig workers are not offered health insurance or job protection. Things can change at any given minute, and it’s up to the gig worker to constantly pursue their next gig.

Where can I get online personal loans as a gig worker with bad credit?

Online lenders can have less strict requirements compared to traditional banks and credit unions. Plus, shopping for a loan online can expand your access to local and national lenders. With bad credit, you may face fewer options when it comes to finding loan offers. As a result, you may need to connect with more lenders to find one that can help. Through secure lending platforms, such as Acorn Finance, you can check offers from multiple lenders in one place with no credit score impact. This can help you find viable loan offers faster, while ensuring you’re working with reputable lenders. 

How do you verify my income as a gig worker?

During the application process for a loan, most lenders will request you to input your income. Then, before approving the loan the lender may even ask you to submit supporting documentation for proof of income. As a gig worker you may face inconsistencies in your income. Therefore, it may be more accurate to input annual income that compiles all the income from gigs over the year. When it comes to submitting proof of income, most lenders can accept tax returns. In some cases you may also be able to use bank statements too. You’ll need to check with the lender you’re working with to determine acceptable forms of proof of income. 

Can I find loans for gig workers with no credit check​?

Some loans do not require a credit check such as pawn shop loans or car title loans. Gig workers with bad credit can access these loans, but they may not meet needs. No credit check loans can have high fees, short repayment periods (think weeks), and low loan amounts. While they can help one access cash quickly with few barriers, they may not better position you to qualify for a loan down the road. Loans that do require a credit check and are reported to major credit bureaus can work to boost your credit score with on-time payments, among other benefits. 

What are the benefits of personal loans for gig workers?

The benefits of a personal loan for gig workers can depend on your unique set of circumstances. We encourage you to consider the benefits as they apply to your situation. Below are some of the benefits that you may want to consider. 

• Keep savings intact: Cash is king. . . as they say. Loans can help you preserve your savings for times when loans are not available. 
• Fixed installments: Personal loans often have fixed installments making them more manageable. Fixed installments allow you to budget the exact amount due over a predetermined period so you’ll know exactly when your loan will be paid off. 
• Boost cash flow between gigs: Installment loans can offer a lump sum of cash to access which can help you stay afloat between gigs. 

How much can I borrow as a gig worker?

The amount you can borrow can depend on the type of loan, the lender, and what you qualify for. Personal loans are available starting at $1,000 up to $100,000, depending on the lender and your credit score. Remember though that the lender will need some level of confidence that you can afford to repay the loan, and intend to. As a gig worker, income and credit score can become even more important to qualify for a loan. Alternatively, you may be a W2 employee and gig worker on the side. If this is the case, you can use both sources of income (as long as they’re legitimate) to help you qualify for a larger loan. 

Is taking out a loan harder for gig workers?

Gig workers may face their own set of unique challenges when obtaining a loan. However, in today’s world we see more and more gig workers as people crave flexibility and entrepreneurship. As a gig worker properly filing taxes, documenting income, and taking other actions to responsibly manage your business can help you when the need for a loan arises. 

How to apply for loans for gig workers:

1. Determine how much you need to borrow: Defining what you need the loan for and how much you need to borrow can help you choose the right type of loan. It can also prepare you for the application process when you’ll need to request a desired loan amount. 
2. Compare various types of loans available: There may be various types of financing available such as personal loans, auto loans, or retailer financing. If you need access to a lump sum of cash with few spending restrictions, a personal loan may be the right choice. If you need to finance a vehicle to support gig work, an auto loan may be the right choice. If you need to finance new equipment, the retailer might be able to offer financing options. 
3. Gather supporting documentation such as proof of income: During the application process lenders can ask for specific details such as income. Then, before approving the loan, they may request supporting documentation. Organizing documentation beforehand can help you submit  accurate information and be prepared to provide documents the lender requests. 
4. Check offers at Acorn Finance: If you’ve chosen to use a personal loan, visit Acorn Finance to check rates. 
5. Accept the best offer and proceed with the lender of your choice: With access to our network of top national lenders, choose the right loan offer and proceed with the lender of choice. 
6. Receive approval followed by funding: Once the lender has verified your information, they can choose to approve the loan. Approved loans can be funded in as little as 1-2 business days, although funding times may vary. 

Why choose Acorn Finance for personal loans for gig workers?

Acorn Finance can help gig workers access more lenders in one place. Through our secure platform, gig workers can check rates from top national lenders in seconds with no credit score impact. From your smartphone or computer, you can explore loan offers without any commitment or impact. The convenience is truly unmatched. 

Get back to the hustle faster. . . check personal loan rates at Acorn Finance today!